Mortgage Compliance Blog

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  • [Q&A] How Will a New CFPB Director Affect Compliance?

    Nov 28, 2017, by Brian Arnesen
    With the upcoming change in leadership, we decided to have QuestSoft President Leonard Ryan and QuestSoft Vice President of Support and Training Carey Aimone weigh in on how a new director could affect the future of compliance and regulations.

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  • How Blockchain Can Be Used for Compliance

    Nov 1, 2017, by Brian Arnesen
    Blockchain has the potential to impact many different industries. The financial services industry is ripe for innovation and is of great interest to enthusiasts for the adoption of blockchain. Blockchain technology can affect how compliance departments, quality control and many other departments operate. Blockchain technology can also help mortgage lenders save money by streamlining workflows and creating a better customer experience, while reducing risk.

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  • How to Create an Exceptional Compliance Program

    Oct 24, 2017, by Brian Arnesen
    HousingWire recently reported that Wells Fargo has appointed a new chief compliance officer to transform their compliance into an “industry-leading” program. This comes after multiple accusations of harmful business practices emerging over the past few years, including accusations of “forcing mortgage applicants to pay unwarranted fees” (Washington Post). This alone would make anyone even remotely familiar with TRID furrow their brow. So, what does it take to make an exceptional compliance program? Well, it all starts at the top.

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  • Analysis of the 2016 CFPB HMDA Data

    Oct 16, 2017, by Brian Arnesen
    Every year, HMDA loan data is made public on all reporting institutions. This data is used by public groups, agencies and businesses to assess mortgage lending and develop better ways of doing business. By analyzing the data, businesses can extrapolate trends and issues across the mortgage industry.

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  • QuestSoft Updates CFPB HMDA Testing Database to Ensure HMDA Readiness

    Oct 2, 2017, by Brian Arnesen
    This week, QuestSoft will be releasing the latest Compliance RELIEF update to enable customers to live test their 2018 data against the 215 new validity error codes and 42 new quality checks—three months ahead of the implementation deadline of January 1st. These new error codes have no ties to historical codes, allowing lenders to start with a “clean slate” and adjust to new standards and conditions throughout their operations.

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  • How the CFPB is Addressing HMDA Privacy Concerns

    Sep 26, 2017, by Brian Arnesen
    The CFPB recently addressed how it planned handle the privacy concerns of its new HMDA reporting and collection requirements. The number of submitted fields is nearly tripling, and these fields must be stored by both financial institutions and the CFPB. With the recent security breaches at Equifax and the SEC, the privacy and security of this expanded dataset is a major concern.

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  • What Is Alternative Data and How Is It Being Used for Loans?

    Sep 22, 2017, by Brian Arnesen
    The CFPB just issued a no-action letter to Upstart Network, an online lending platform, which uses alternative data to make credit and pricing decisions. This means the CFPB will not take legal action against the company for actions that are not technically legal, but are acceptable as long as Upstart provides certain information to the CFPB regarding the loan applications it receives, how it decides which loans to approve and how it will mitigate risk to consumers. The CFPB wants to study how alternative data can be used to better serve the credit needs of underserved populations.

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  • How the New CFPB 2018 HMDA Rules Will Affect Fair Lending Examinations

    Aug 31, 2017, by Brian Arnesen
    The CFPB has stated that fair lending enforcement is a priority and has issued more than $45 million dollars in remediation since 2016 for violations. Institutions that are able to take advantage of the new HMDA data expansion will not only have smoother examinations, but will also be able to make data-backed business decisions.

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  • When Will Banks Use AI for Compliance?

    Aug 21, 2017, by Brian Arnesen
    Artificial Intelligence (AI) and automation are common buzzwords used these days. With new advancements in technology many people are asking the question “When will humans be replaced by automation and AI?” “The largest banks, including JPMorgan and HSBC, have doubled the number of people they employ to handle compliance and regulation. Compliance now costs the banking industry $270 billion a year and accounts for 10% of operating costs,” according to The Financial Times[CA1] . As the cost of compliance continues to rise, financial institutions are looking for new technology to solve their business needs. With the popularity of electronic mortgages, it is logical to assume that automated compliance software should already be part of a compliance management system; but AI can take it one step further.

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  • The CRA Examination Process Explained

    Aug 8, 2017, by Brian Arnesen
    There are 3 phases to an examination: 1. Pre-examination Planning: Examiners gather information from the FDIC records and contact the institution to request specific information and documents. 2. Review and Analysis: Examiners evaluate an organization’s compliance management system and its effectiveness. They will analyze any weaknesses and violations. Examiners will also assess risk to consumers based on a bank’s practices. 3. Communicating Findings: Examiners will discuss their findings with management and provide a Report of Examination that documents both the strengths and weaknesses of a bank’s CMS.

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